Custodian moots start of ‘global upward swing’

Regional investor Custodian Property Income REIT is confident about the future after trading improved in the three months ended 30 September. Richard Shepherd-Cross, managing director at Custodian Capital, said: “Having previously stated that we believed the market was bottoming out and with two consecutive quarters of broadly flat valuations behind us, it is pleasing to report a marginal increase in our portfolio valuation at the halfway point of the year. “While one swallow does not make a summer, this does support our belief that, generally speaking, we are at the start of a gradual upwards trend.” He added: “However, the importance of stock selection and proactive asset management to drive returns remains as acute as ever and the 20-plus lettings, lease renewals, regears and rent reviews at significant average premiums to ERV and previous rent that we have undertaken during the quarter, as well as the sales we continue to make on terms ahead of valuation, will be supportive of future earnings and dividend cover.” Custodian reported a 1.5% increase in like-for-like passing rent and a 0.8% increase in like-for-like estimated rental value in the three months ended 30 September, with figures driven by 1.1% like-for-like rental growth in the industrial sector. The firm completed 20 new lettings, lease renewals and regears across 12 assets as well as two rent reviews during the period, with deals secured at 9% above previous passing rent. Valuations across Custodian’s £580m portfolio also stabilised with a small uptick on a like-for-like basis.